If the return of loss is filed after due date than business loss cannot carry forward under sec 80 . What treatment of that loss in pvt ltd co. kindly suggest me
Ex. Ay 2017-18 business loss 9500( itr filed after due date)
2018-19 business loss 28789 (filed before due date)
Now this year a.y 19-20 profit 41700
Than it will be adjusted only 28789 rs so kindly suggest me what will I do any of rs 9500
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Business loss carry forward
Replies (5)
AY 2017-2018 business loss 9500/- became ineligible for c/f since return filed was after due date.
You have not to do anything for 9500/-
You have not to do anything for 9500/-
Okk i understand but i do or adjustment entry in book of account bz actual net worth would be 41700-(28789+9500) = 3411
net worth sh cap. + free reserve 100000+ 3411 = 103411
net worth sh cap. + free reserve 100000+ 3411 = 103411
Books of account you keep as per audited Balance Sheet & P&L
If you filed after the due date , according to 271 F defines that you need to pay rupees 5000 as penalty @ direction of the assessing officer.
1. Yes, you are right. As per sec 80 business loss cannot be carry forwarded if the ROI is not filed within the due date specified u/s 139(3).
2. In your case for the AY 2017-18 since the return was not filed within due date as per sec 80 this loss will not be allowed to be carry forward and set off in the coming years.
3. In the AY 2018-19, since loss return was filed within due date, loss of Rs. 28,789 will be allowed to be carry forwarded and set off against future profits.
4. All the above provision are only for the purpose of Income-tax and not for arriving at a profit under companies act. So, the loss will be set off in your books of accounts maintained for companies act and loss will be ineligible (relating to AY 2017-18) for Income tax purpose.
Please correct me if the above solution has an alternative view.
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